Auto Insurance Questions Your Customers (And Potentials) Are Most Likely To Ask
Being able to answer your customers’ (and potential auto insurance customers’) questions will go a long way in proving that you are the agent for them. But each customer is a unique case and without a working crystal ball, it can be challenging to prepare. Luckily, for most auto insurers, the questions are pretty standard. Let’s take a look at some of the most common.
One: How much auto coverage do I need?
Most auto insurance customers are unfamiliar with the state’s minimum requirements for auto insurance, so being able to roll that off your tongue immediately will help to establish credibility. However, it’s also important to present them with real-world scenarios wherein the minimum doesn’t go far enough in offering protection. Too often, customers stick to the underestimated state minimum requirements and when they cause an accident, they end up putting personal assets at risk.
Two: What effect does credit history have on the cost of my auto insurance?
You’ve probably seen some variation of this question asked in your time working with insurance customers. While some states won’t allow scrutiny of credit status when approving increases in insurance premiums, far more do. Generally, lower credit scores result in higher premiums because the insurance company considers these types of individuals a higher risk for filing claims (or having claims filed against them).
Three: What discounts am I eligible for?
Discounts are a great way of securing a customer’s loyalty for some time to come. That’s why you don’t want to stop with auto insurance. You want to sign them up for life insurance, homeowners insurance, rental insurance, etc. Not only is it better for the company, but it also automatically applies discounts to premiums across the board, allowing the customer to save (potentially) hundreds each year. If you can clearly dictate these discounts to the customer, there’s a better chance they’ll sign with you.
Four: How can we reduce premiums for the young drivers on our policy?
Of course, the best ways of doing this are putting the teen in an appropriately safe automobile, setting higher deductibles, fixing small claims on one’s own without filing, and encouraging responsible driving behavior. Make sure your clients understand these factors ahead of time, and share some real-world scenarios of how much their insurance could go UP if their younger driver causes an accident, is arrested for driving while intoxicated, or gets a traffic ticket.
Five: How do I keep my policy from getting canceled?
Most companies won’t pull the plug on an insurance customer after a few claims, but it’s important that clients know of this and other possibilities of getting their insurance canceled or non-renewed. One cancellation can make it harder to get insurance elsewhere, so your clients will want to know so they can avoid such an outcome.
Six: What effect will the purchase of a new vehicle have on my premium?
New cars can run the gamut of being expensive to insure or very cheap. Generally speaking, they are easier to insure cost-wise because they’re newer and have more dependable construction and safety features. Buying “sporty” cars with a lot of get-up-and-go can result in a higher premium simply because those cars are associated with a higher degree of risk. So when you’re answering this question, make sure you can give your clients some idea of the differences in price between a common sedan and a supercar.
Being prepared for your auto insurance customer’s questions is essential to keeping him or her happy throughout the life of their driving career. And as you know, it’s easier to get discounts if you service other needs through the same company (i.e. life, home, etc.).